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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to our leases is as follows (dollars in thousands):

Category	Classification	June 30, 2019
Assets
Operating lease assets	Operating lease assets	$	949,216
Financing lease assets	Other assets, net		68,193
Total leased assets		$	1,017,409

Liabilities
Current:
Operating	Operating lease liabilities	$	173,496
Financing	Other current liabilities		27,192
Non-current:
Operating	Non-current operating lease liabilities		996,228
Financing	Other liabilities		41,001
Total lease liabilities		$	1,237,917

Schedule of Components of Lease Costs

Components of lease cost are as follows (dollars in thousands):

Component	Classification	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease cost	Operating, administrative and other	$	46,098		$	92,825
Finance lease cost:
Amortization of right-to-use assets	(1)		7,118			14,287
Interest on lease liabilities	Interest expense		243			448
Variable lease cost	(2)		16,106			33,053
Sublease income	Revenue		(1,033	)		(1,274	)
Total lease cost		$	68,532		$	139,339

(1)

Amortization costs of $5.7 million and $11.6 million, respectively, from vehicle finance leases utilized in client outsourcing arrangements are included in cost of services. Amortization costs of $1.4 million and $2.7 million, respectively, from all other finance leases are included in depreciation and amortization.

(2)	Variable lease costs of $3.8 million and $6.9 million, respectively, from leases in client outsourcing arrangements are included in cost of services. Variable lease costs of $12.3 million and $26.1 million, respectively, from all other leases are included in operating, administrative and other.

Schedule of Weighted Average Remaining Lease Term and Discount Rate for Operating Leases

Weighted average remaining lease term and discount rate for our operating leases are as follows:

		June 30, 2019
Weighted-average remaining lease term:
Operating leases		9 years
Finance leases		3 years
Weighted-average discount rate:
Operating leases		3.4%
Finance leases		2.2%

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities by fiscal year as of June 30, 2019 are as follows (dollars in thousands):

	Operating Leases		Financing Leases
2019	$	85,879	$	14,546
2020		188,651		24,902
2021		183,905		17,185
2022		159,028		9,750
2023		141,397		3,750
Thereafter		604,770		674
Total remaining lease payments at June 30, 2019	$	1,363,630	$	70,807
Less: Interest		193,906		2,614
Present value of lease liabilities at June 30, 2019	$	1,169,724	$	68,193

Schedule by Year of Future Minimum Lease Payments for Noncancelable Operating Leases

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018 and under the previous lease accounting standard, the following is a schedule by year of future minimum lease payments for noncancelable operating leases as of December 31, 2018 (dollars in thousands):

2019	$	238,954
2020		219,351
2021		202,205
2022		172,267
2023		145,705
Thereafter		510,741
Total minimum payment required	$	1,489,223

Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases

Supplemental cash flow information and non-cash activity related to our operating leases are as follows (dollars in thousands):

	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	78,630
Operating cash flows from financing leases		621
Financing cash flows from financing leases		14,902
Right-of-use assets obtained in exchange for new operating lease liabilities		75,116
Right-of-use assets obtained in exchange for new financing lease liabilities		18,607
Other non-cash increases in operating lease right-of-use assets (1)		25,598
Other non-cash decreases in finance lease right-of-use assets (1)		(226	)

(1)	These noncash increases in right-of-use assets resulted from lease modifications and remeasurements.